Pay a certain amount of premium to obtain a buying or selling right from the issuer. This right allows the holder to buy/sell a certain amount of assets from the warrant issuer at an agreed price on a specific date or within a specific period in the future.

A put warrant is a right that the holder pays a premium and obtains the right to sell the underlying asset in the future from the issuing institution or individual.

For example, if the agreed price of stock warrant A is 4.62 yuan, the holder of the put warrant can sell the corresponding stock at the price of 4.62 yuan, regardless of whether the agreed stock price at that time is 2 yuan or 8 yuan.

If the price is 2 yuan at that time, the value of the put warrant is 2.62 yuan.

Because the warrant holder holds rights rather than obligations, when the price is higher than or equal to 4.62 yuan, the holder can give up exercising the warrant, which is equivalent to losing the premium.

Nikkei Put Warrants.

As the name suggests, it is a put warrant with the Japanese stock market as the underlying asset.

To put it bluntly.

Goldman Sachs wants to buy Nikkei put warrants from Nippon Life Insurance, which means it is betting against Nippon Life Insurance on the rise and fall of the stock market, while Goldman Sachs is on the bearish side.

This kind of bet is undoubtedly ridiculous.

Japan Life holds 2% of the total market value of the entire stock market, making it the largest banker in the Japanese stock market. Other city banks and life insurance companies also hold large-scale chips.

No one knows the total amount of chips.

However, it is definitely an extremely concentrated and highly controlled situation, and it would not be surprising even if it holds more than 60% of the outstanding shares.

Although there is competition among the major institutions, they have always been in solidarity when facing foreign capital.

When the entire market is controlled by Japanese institutions, it is undoubtedly a very stupid act for Wall Street to have the crazy idea of ​​shorting the Japanese stock market.

"Are Americans idiots? Morgan lost miserably in the bet with us, and Salomon Brothers almost went bankrupt? Under such circumstances, Goldman Sachs still dared to bet with us. Have they reached a point where they are beyond human salvation?"

"They actually bought Nikkei put options from us. Is there shit in the Americans' heads?!"

"No wonder Wall Street is always vulnerable today. If it were full of stupid guys like Goldman Sachs and Morgan, we would make them lose their underwear sooner or later."

"Even a pig will remember if it is hit in the same place twice, but they would make the same mistake again. It's horribly stupid."

"They are indeed an inferior race. Humanity may not be able to save these idiots anymore."

“.”

"The Chinese New Year is just over two months away, and these idiots on Wall Street are actually giving us dollars. Are they trying to get us to give them more year-end bonuses so we can have a good year?"

"Ha ha."

Meeting room.

The air was filled with smoke.

Presidents from various regions were talking excitedly and drooling as they talked about Goldman Sachs buying put options from Nippon Life Insurance.

Everyone looked very excited, and when they talked about exciting things, many of them blushed and laughed out loud.

Because in everyone's eyes, Wall Street investment banks are simply looking for trouble by giving away money.

But such heated discussions and the excitement on everyone's faces seemed very strange to Nagano Nao.

This bunch of idiots!

Don’t you know that the knife has been put to your head?

And give money?

They are here to rob, okay?

"Gentlemen, are you overly optimistic about this? Don't you think it's very strange that Goldman Sachs dares to continue betting against us when Morgan and Salomon Brothers have suffered huge losses?"

Nagano Nao gave a very tactful reminder that after all, most of the people present were from the Keio school, so they still had to save their face.

But then the president of the Kanagawa branch, Tomosato Takatani, said exaggeratedly: "Is there anything strange about this? The Americans are an inferior race, and they have also incorporated the genes of gorillas. How can they compare with our human wisdom!!!"

"What?"

"James Watson believes that human evolution is inseparable from the environment, and therefore IQ and body size are inversely proportional. We East Asians are the smartest race, and blacks cannot reach human standards. Otherwise, why do you think Prime Minister Nakasone said that the United States is an inferior race!"

"Come to think of it, Nagano-kun should have still been in high school at the time, so it's normal that you didn't know."

"Nagano-kun, you are still too young. Don't use our human standards to judge the weird things done by the idiots of inferior races. Otherwise, they will only defeat you with their rich experience of stupidity."

Nagano Nao almost vomited blood.

Is this kind of racial superiority really good? The Americans are number one in the world, who in this world dares to say that they are an inferior race!

You bunch of idiots, don't you think before you say it?

But there is no way to refute this kind of words.

This guy, former Prime Minister Yasuhiro Nakasone, actually said that Americans are an inferior race, and he said it publicly.

The cover of Time magazine in the United States during that period was a Japanese plane dropping cars and home appliances on the United States, with the headline "Tora, Tora, Tora". It meant that Japan was attacking us again, but this time it was a smokeless economic and trade war.

It was during this guy's term that the United States and its European allies jointly promoted the idea that the appreciation of the yen would balance trade issues. As a result, Takeshita Noboru signed the Plaza Accord in 1985, and the yen appreciated significantly.

I have finally seen what populism is!

I can't even complain about it.

For a long time, mainstream Japanese society has been permeated with widespread racism.

Just like the matter of marriage and offspring.

People in mainstream society would never consider marrying and having children with anyone other than the yellow race. Even in today's bubble era, even if Hawaii was almost bought and people went there to date foreign models every day, very few people would marry foreign women.

Even when it comes to trainees, which are cheap labor, they don't consider races other than the yellow race. Even though North Korea, China, South Korea, and Vietnam are sworn enemies, they only look for trainees from these countries.

Damn! This sense of racial superiority! Can you please stop being so superior? What a lame excuse!

At this time.

Jingtian walked in.

Nagano Nao had something to say, so he had to follow everyone else in greeting.

Compared to the ministers present, Iida Yoko's expression was much calmer. He went straight to the point as soon as he opened his mouth: "What do you think about Goldman Sachs buying put options from the company?"

"The stupid Americans are giving us money, so there is no reason for us not to accept it!"

"I'm afraid these idiots on Wall Street want to sponsor us to complete our small goal of buying the United States, so of course we have to sell it to them."

“.”

These idiots are fucking hopeless!

Listening to the heated discussions, Nagano Nao couldn't stand the sense of superiority of these idiots, so he looked at the chief Ida Yoko.

Since Sakurako Ikeda knew that Yasunari Mie would raise interest rates to burst the bubble after taking office this month, there was no reason why Iida Yoko would not know this news.

But Iida Yoko's reaction was beyond Nagano Nao's expectations. He simply said, "Since you all think so, then please contact Goldman Sachs, Mr. Abe."

"Ha Yi!"

"Mr. President."

"Don't blame yourself about the problem with Osaka Industrial Asset Management, Nagano-kun. Let's talk in my office later."

"Ha Yi."

(End of this chapter)